Navigating the regulatory response to fintech’s disruption of the financial services industry
Our lawyers understand the regulatory challenges fintech companies face as they stir disruptions in the financial services and banking industries, changing the way people spend, invest, and lend money.
We bridge the gap between emerging technologies and fintech regulations that are slow to adapt. In the process, we help companies leverage new technology and find market opportunities in an increasingly competitive environment.
Our fintech lawyers work across offices in the United States, Europe and Asia. We draw on decades of experience to advise key players in the biggest global fintech markets. Clients relying on our solutions range from large financial institutions with operations spanning many countries to entrepreneurial companies launching their businesses in a single jurisdiction.
Our areas of specialization include:
Blockchain and Digital Assets
Our fintech lawyers are at the forefront of sophisticated transactions involving cryptocurrency and digital assets, helping increase the efficiency, accuracy and value of those transactions. We know blockchain – you can find our analyses in the Cryptocurrency and Blockchain Resources Center – and are well-equipped to address the regulatory issues faced by fintech firms disrupting the financial services and banking industries. Our efforts include helping clients leverage the benefits of distributed ledger technology (DLT) to innovate and re-envision how financial instruments and investment products can be constructed.
Alternative Loans and Finance
Borrowers and lenders have new ways of connecting in the marketplace, creating opportunities for private investors, small and medium-sized enterprises and institutional investors. Our fintech lawyers know the legal framework and familiar structures employed (144A, Reg D, S1), as well as the key differences as digital and tokenized securities bring new asset types to the markets. With extensive experience in marketplace lending and capital market structures, we guide established and emerging fintech clients as they execute sophisticated structured finance and securitization transactions — helping them comply with regulatory responses and challenges to fintech in the process.
Electronic Financial Services
Our lawyers represent providers and consumers on legal issues connected to electronic transactions, online investment advisers and marketplace lenders. We have an overview of legal, statutory, contractual and strategic issues that stem from using data analytics and machine learning to collect, develop and monetize financial data. Our global team offers perspectives on legal matters and regulatory responses to fintech that vary from one jurisdiction to another. We also share insight into customer behavior and the cultural mindset in different regions.
Electronic Trading Activities
Dechert’s fintech lawyers advise clients on legal and regulatory issues, including compliance with securities laws and regulations, and intellectual property protection. We also assist with privacy and data protection related to offering direct market access and directed brokerage, developing proprietary trading algorithms, and operating alternative trading systems and securities exchanges. In addition, we regularly represent clients seeking to invest in electronic trading firms and their technology.
In addition to the areas above, we advise on business-critical matters related to:
Breach response, litigation and enforcement actions
Compliance with public and private regulatory requirements
Cybersecurity compliance advice, analytics and litigation
Data privacy compliance advice, analytics and litigation
Data Protection Laws
Domestic and international tax
Fund and investment adviser formation and related regulatory matters
Government enforcement, investigations and examinations
IP advice, protections, licensing and litigation
Joint ventures, strategic alliances and outsourcings
Mergers and acquisitions
Private equity and venture capital transactions
Registration as alternative trading systems and broker-dealers
Software-as-a-service and data monetization
Structured finance and securitization
Technology and software disputes
Our Track Record
Our clients include companies, platforms, technologists, investment managers and funds, banks, broker-dealers, exchanges, and private equity and venture capital investors. We work extensively with alternative trading systems, high frequency and algorithmic trading firms, digital investment advisers, data companies and other financial services innovators.
Here are examples of how we helped clients:
A Chinese bitcoin mining company in connection with a global data breach in which US$500 million of bitcoin was stolen.
A digital asset and technology company with respect to the establishment of a de novo special purpose national bank charter.
Affirm, Inc., Avant, Inc., Carvana Co., BFS Capital, Inc., Enova International, Inc.and loanDepot.com, LLC in connection with bank partnership arrangements; whole loan sale and forward flow programs; 144A securitization transactions; and warehouse and term financing facilities.
A global e-commerce trade association regarding the development of comprehensive, practical behavioral advertising and other online privacy guides.
A global financial services institution in connection with the establishment of a business to provide digital credentials and authentication services. We advised on strategies for the protection of core technologies and for the commercialization of products and services. We also prepared and negotiated agreements relating to the development of the digital technologies, partnering agreements with third parties to support the exploitation and commercialization of the technology, and customer and user services agreements.
A global financial services provider on a Microsoft Office 365 email intrusion that lead to the exposure of thousands of health insurance records, including information protected under HIPAA; as well as the defense of HHS/OCR and day-to-day counseling on privacy/cybersecurity issues.
A global financial services provider regarding legal risks associated with implementing novel actions to protect company systems and customer data.
A global provider of financial services software on formulating and implementing a CCPA program for current and contemplated products and services.
A global provider of services to the financial services sector in Board training on the evolving role of corporate boards in understanding and accountability for cyber and data security risk.
A hedge fund in its complex settlement agreement with a software developer with respect to the ownership of high-frequency trading software and the underlying algorithms used to make trades using the software.
A major fintech company in an inquiry regarding money transmission licensing requirements.
Angels of Impact, a Singaporean social enterprise group, in establishing a fund that uses blockchain technology to make sustainable and ethical investments. The technology allows Angels of Impact to track returns and reduce misuse of funds.
A private equity firm in its investment in a global electronic trading firm.
A U.S. start-up in its registration with the SEC and membership in FINRA as the first broker-dealer approved to operate an alternative trading system to trade U.S. Treasury securities.
Advised BitFury Group, a leading bitcoin infrastructure provider and bitcoin transaction processor, on equity financing.
Blackboard Inc., a leading global educational software company and an affiliate of Providence Equity Partners, in its US$260 million acquisition by tender offer of Higher One Holdings Inc., a NYSE-listed financial technology company and the 2019 sale of its Blackboard Transact business unit to Reverence Capital Partners, LP.
Advised Blockchain Limited, the largest crypto e-wallet and blockchain search provider, on its reincorporation and initial equity financing transactions.
Certain large mutual funds complexes and their boards of directors with respect to the acquisition by the funds of residential mortgage loans.
Digital Asset Strategies in connection to the launch of a cryptocurrency hedge fund.
Figure Technologies, Inc. on the US$20 million security token offering successfully completed by Provenance Blockchain, Inc.
Figure Technologies, Inc. on its closing of a US$1 billion asset-based financing facility custodied on its Provenance.io blockchain.
Fund managers in connection with loan purchases and financing facilities related to loans originated on platforms sponsored by Lending Club, SoFi, Freedom Plus, Square, CommonBond, Funding Circle U.S., Funding Circle U.K., Upstart and others.
Further Global Capital Management in its acquisition of Payment Alliance International, the nation’s largest privately-held ATM provider.
GIC in connection with the US$20 billion acquisition by an investor group of a majority stake in Thomson Reuters’ Financial & Risk Business (Refinitiv) and subsequent sale by the investor group of Refinitiv, a global provider of financial market data and infrastructure, to the London Stock Exchange for US$27 billion.
GIC on the merger of Ultimate Software, a specialist HR software solutions and HR payroll, and Kronos Incorporated for an enterprise value of US$22 billion.
Interactive Brokers Group, an automated global electronic market-maker and broker that operates in more than 60 electronic exchanges and trading venues around the world, in its US$1.2 billion initial public offering. This represented the second largest IPO (at the time of issuance) in 2007. Beyond its significant size, the transaction was noteworthy because: it was conducted through a non-traditional “best efforts”/Dutch auction approach.
JetPay, a provider of end-to-end payment processing and Human Capital Management solutions, on its US$184 million sale to NCR Corporation.
Morgan Stanley Investment Management in the establishment of AIP Alternative Lending Fund A and AIP Alternative Lending Fund P - registered closed-end funds organized primarily to acquire marketplace loans.
Multiple alternative trading systems regarding compliance with Regulations ATS and NMS and responses to the SEC and FINRA in connection with SEC and FINRA examinations.
Conduct comprehensive reviews of electronic order routing by multiple stock and options exchanges for compliance with Regulation NMS’s trade-through rule.
People’s United Bank in a summary judgment victory in a landmark case, which involved an alleged breach of the bank’s online security system through keylogging malware. One of the first cases of its kind to be decided by an appellate court and named a “national case to watch” by the American Banker, the dispute was resolved after the First Circuit reversed in part and remanded the district court’s decision.
PPC Enterprises in connection with its acquisition of Private Client Resources, L.L.C. (“PCR”). PCR provides wealth data aggregation solutions and services to financial institutions, advisors and leading technology providers to the ultra-high-net-worth segment
Public Pension Capital (PPC Enterprises) and its portfolio company Viteos, a tech-enabled provider of end-to-end middle and back office administration for asset managers, on Viteos’ sale to Intertrust N.V.; recognized as finalist for “Private Equity Deal of the Year” by The Deal Middle Market Awards 2020, and in connection with the prior acquisition of Viteos.
SolidX regarding SEC compliance and related issues in connection with a proposed bitcoin-based exchange-traded fund on the NYSE.